The world of insurance can be super complex and trying to navigate through the various types of insurance to find exactly what is necessary and what is not can be confusing. Before you contact the insurance company, it is important to be familiar with the different types of insurance available and which ones you actually need. Then a top insurance broker can help you sort through the types of policies and find what is suitable for your unique set of circumstances.
Why Insurance is Important
Insurance is important because it provides protection from risks of the unknown. There are types of insurance you would not consider not having like auto insurance, homeowners or health insurance. Insurance helps you pay expenses when something goes wrong like an automobile accident, or a tree falling on your house, or even your neighbor’s house. In order to provide financial protection for you and your family. You’ll want to consider these different types of insurance:
- Health/Disability Insurance – You can obtain health and/or disability insurance through different sources including an employer, a partner’s employer, a labor union, or on an individual basis through the insurance marketplace. Having health insurance means you or your family members can seek medical care for preventive treatments, routine checkups or medical care if you become sick or injured. Disability insurance is usually obtained through an employer or and independent marketplace. It provides a supplemental income source in the event the policy holder is not able to work for an extended amount of time. Both of these are very important.
- Renter or Homeowner’s Insurance – It does not matter if you are a renter or a homeowner, insurance can help protect your property. By purchasing an insurance policy, you protect your belongings if there is a fire, weather event, burglary or some other form of natural or manmade disaster. You don’t always have to go to an independent agent to obtain this type of insurance as many times it is an add-on to other types of insurance like auto insurance.
- Automobile Insurance – You do not need car insurance if you do not own a vehicle. But for those who do own one the state you reside in has certain minimum requirements regarding how much you have to purchase. Usually, it is a smart move to get a little more than what the law requires just to protect yourself. In some states you only need enough to cover other drivers or people who might be injured or hurt in a crash you caused. But it might not be enough for other little fender benders or things like rental car usage. Look up what your state requires and then compare it to what you carry currently. It’s important to know what is and what is not covered by an auto policy. Don’t wait until you are in an accident to figure out what is and isn’t covered.
- Life Insurance – Many people fail to see the importance of life insurance. It is obtained similarly to health insurance, but can be purchased independently. Life insurance protects your family if you were to die. It can cover funeral cost and at least some revenue while your family adjusts to your passing. Most life insurance provided by employers will at least cover part of your annual salary to help care for your family. In most cases you can purchase more life insurance at a reasonable rate if you feel like your family would need it.
These are the four basic types of insurance that nearly everyone should get. If you are a working adult, living on your own or supporting a family then you should have at least considered these types of insurance.
Other Types of Insurance
There are other types of insurance to consider depending on your particular situation, occupation and age. You might look into these types:
- Pet Insurance – This is like health insurance, but for your pet. Should you need to take them to the vet, depending on your policy, it can cover medications and various treatments they might need should they become ill.
- GAP Insurance – This insurance covers you if you have a monetary gap between what a vehicle is worth and what you owe on it if you need to sell or trade it in. If you buy new vehicles or lease them this can be a handy insurance.
- Travel Insurance – If you travel a lot this type of insurance can help cover you should something go terribly wrong while you are on vacation or traveling for business.
- Supplemental Insurance – Supplemental insurance helps cover extra expenses that are not covered by your regular health insurance. For instance, if you need expensive treatments like chemotherapy or surgery, supplemental insurance will cover the expenses your regular health insurance won’t take care of.